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Dollar Domination! USD Surpasses 4000 Colombian Pesos

Last activity 24 September 2022 by cccmedia

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MotitaSr

@cccmedia Which goes to show that it's not a Petro problem.  It's a global problem.  The dollar is just strong right now.  We haven't had parity with the Euro in ages.  Much of the world is on the brink of recession but the US government is the only one, so far, that has really put on the brakes to reign in inflation, which has the effect of making it stronger compared to many other currencies, Euros and pesos included.

cccmedia
Finally, the exchange corrects some.

The week of July 11-15, 2022, ends with a
notable correction in the Dollar-Peso
exchange rate.  For the Dollar, the high for
the week was 4624, another record.
On Friday, the Dollar dropped versus
Colombian currency .. closing the week
at 4357 Pesos to the Dollar.

Source... xe.com USD-COP charting
ChineduOpara
@mtbe "Costa Rica, Panama and Ecuador, all on the dollar, are huge draws for wealthy people tourism. "
Fixed that for ya. You're welcome 1f601.svg
ChineduOpara
I was reading an article not too long ago that said many Venezuelans have reverted to using gold.  Just straight up gold.  They said people are so used to it now that many are able to give a pretty accurate weight estimate just by looking at a piece.

While I hope it doesn't happen, I don't think that moving to the dollar would spell disaster for Colombia.  It works just fine in several other countries and some American tourists get so discombobulated trying to convert that they prefer countries that use the dollar.
- @MotitaSr

Maybe not outright disaster, but it WILL definitely slow down the tourism. Let's be honest, a big chunk of tourists to Colombia are budget-minded "party/fun-seekers" (you can read between the lines), who can't afford ANY of that stuff in the USA or most of Europe.

How much will the tourism slow? I don't know, but it won't be insignificant. I can imagine that - for example - the Walled City/Centro in Cartagena might become barren or turn into a ghost town. Meanwhile, the tourist activities for relatively-wealthy families and fixed-income retirees might likely keep going, regardless of price increases... and by then we're looking at another Costa Rica... 3-night stays at fancy/semi-exclusive beach resorts for a nice wholesome wealthy family of 4, for $5,500 including door-to-door transportation and food. 2-person minimum (so single people can eff right off, I guess, haha)

I promise you, if Colombia switches to the dollar, inflation will hit like a ton of bricks... very few single or budget-minded people are gonna wanna visit Colombia for anything other than unavoidable business, or medical tourism.

If that happens, if much of the dollars stop flowing into Colombia... what are the struggling Colombian locals supposed to do? I predict civil unrest. And Petro's enemies will point and say, "A-HAH!"
cccmedia
Dollarizing Colombia?

Colombia's neighbor Ecuador was experiencing
so much inflation in the year 2000 that
the country switched to the U.S. Dollar as
the national currency.

The word 'dollar' is spelled/pronounced there as
dólar, plural: dólares.  Stress the accented
syllable.

--

Encountering a one-dollar bill in Ecuador is rare.
You might be able to get some at a 'banco';
while you're there, see if you can stock up
on two-dollar bills, which is sometimes
'posible'.

--

As soon as the Y2K changeover happened,
taxi drivers in Quito expected one dollar
to be the minimum fare.  It now seems
to be $1.50, or sometimes at least $3
after about 8 p.m.

--

Both U.S. and Ecuadorian coins are
in circulation.  The denominated
coins are the same size and weight;
for instance, a U.S. dime is the same
size, weight and value as a
ten-centavo coin.

--

Colombian money is especially
confusing to some foreigners
because it tends to have so many
zeros in the denominations.  The
printing on the bills make the
zeros less prominent,
which can add to the confusion.

The peso-based coins can be a
nuisance, for instance on a bus
ride In Medellín.  Currently, the
fare on a standard bus is
2,550 pesos.  Usually, I will hand
the driver a 2,000-peso bill
(value about 48 cents U.S.) and
let him fish out the other little
coins from what I show in my hand.
This always seems to work out.

cccmedia in Medellín


mtbe
@mtbe "Costa Rica, Panama and Ecuador, all on the dollar, are huge draws for wealthy people tourism. "
Fixed that for ya. You're welcome 1f601.svg
- @ChineduOpara

Having just driven through ALL of those countries, there are TONNES of backpackers in ALL of those countries.  They are not the wealthy travelers.  Switching to the dollar won't affect much in tourism. Just take a look at the tourism rates for those countries since '95...all increasing...minus the dip for Covid.
ChineduOpara

@mtbe I suppose only time will tell!

HutchX2020
Costa Rica the gringos forced the locals out as it is more expensive to live there than the US  now they can keep it
ChineduOpara
@HutchX2020 An article and a couple of videos supporting what you (and I) are saying about Costa Rica's sky-high cost living:

https://www.entercostarica.com/travel-g … costa-rica

https://www.youtube.com/watch?v=z4m4pyV … annel=Caya

A few months ago I found a documentary that was from made from the LOCALS perspectives. It dived into how all the well-heeled expats have made it nigh-impossible for locals to live their normal lives within their budgets. It was quite tragic to see and hear. I can't seem to find it on YouTube, maybe it's on Facebook. Maybe someone else in this thread knows the documentary and can link to it.
cccmedia
Week-ending rally for the Dollar.

The U.S. Dollar dropped in value
versus the Peso during the week
ending today, July 22, 2022, then
rallied on Friday against the Peso.

The Dollar ended the week at a
rate of 4454 Pesos vs. the Dollar.

Source... xe.com USD-COP charts
cccmedia
Peso had an 'up' week.

The Colombian Peso gained strength throughout
the week of July 25-29.

U.S. currency closed the week at 4293 Pesos to
the Dollar, a drop of over 100 ticks for the Dollar
versus the previous week.

Source... xe.com USD-COP charting
cccmedia
Inflation seen at 22-year high.

Dollar domination is enabling Expats in
Colombia to weather a high-inflation
period.

Analysts cited by Reuters see annual
inflation in an upward swing that is
on course to a 22-year high of
9.98 percent (annual rate) through
the end of July.  That's 0.31 percent
above the annual rate through June.

Supply issues and robust demand
are credited for the unusually
high inflation rate.

13 analysts were surveyed.

Credit:  reuters.com
cccmedia
Dollar moves up.

The U.S. Dollar moved up and down during
this week just ended (Aug. 1-5, 2022).

The Dollar ended the week on an up note,
standing at 4342 Pesos to one Dollar.

Source... xe.com USD-COP charting
cccmedia
Dollar mostly down this week.

The U.S. Dollar has been on a roller-coaster ride,
mostly downward, this week, August 8-12, 2022,
versus the Colombian Peso.

The Dollar closed the week at 4164 Pesos.

Source... xe.com USD-COP charting
cccmedia
A strong stretch for the Dollar.

The U.S. Dollar had a strong and solid
week -- August 15-19 -- versus the
Colombian Peso.

The Dollar is now close to ten percent
stronger versus the Peso than when it
surpassed the 4000-Peso mark
some months ago.

The Dollar finished out the week at
the exchange rate of 4387 Pesos.

Source... xe.com USD-COP charting
cccmedia
Dollar closes above 4400 on Deuces Day.

It's another positive day for the Dollar, which
closed at just above 4400 Colombian Pesos
today, Monday, 8/22/22.

The precise close, according to xe.com,
was an exchange rate of 4000.64 Pesos
to the Dollar.
cccmedia
Dollar channeling near 4400.

The U.S. Dollar channeled in a tight range
just below 4400 for most of the week
of August 22-26, 2022.

The week ended with the Dollar at
4397 Colombian Pesos on Friday.

Source... xe.com USD-COP charting
cccmedia

Dollar approaches 4500 !


The U.S. Dollar closed the week ending

September 2, 2022, at an exchange rate

of 4488 Colombian Pesos to the Dollar.


Only during the second week of July 2022

has the Dollar closed higher than it did today,

(It was at 4623 Pesos on July 13 before then

dropping to significantly lower levels.)


Source.... xe.com USD-COP charting



ChineduOpara

@cccmedia Nice. Also, maybe it's time to update the thread title 😁

cccmedia

Good idea, Chine.


When we cross the 4500 barrier on a daily close,

I will probably change the thread title or

start a new thread with 4500 in the title.


cccmedia

cccmedia

A drop in the Dollar.


The mighty Dollar backed off about 130 ticks

in a week where the Colombian Peso showed a

bit of strength.


The exchange closed for the week of Sept. 5-9

with the USD equivalent to 4351 Pesos.


Source... xe.com USD-COP charting

futuroexpat

Seems President Petro is a stabilizing influence on the currency exchange. All that pre-election politickin’ against Petro was just alarmist.

For example, Most people (and 53 other countries) support Petro’s condemnation of Nicargua’s violation of human rights.

So far, Petro is rational, measured, and stable. I think Petro is a stable genius who will not allow Colombia to become Venezuela (another pre-election alarmist claim)

Your dollars are safe with Petro as president.

OsageArcher

Seems President Petro is a stabilizing influence on the currency exchange. All that pre-election politickin’ against Petro was just alarmist.
For example, Most people (and 53 other countries) support Petro’s condemnation of Nicargua’s violation of human rights.
So far, Petro is rational, measured, and stable. I think Petro is a stable genius who will not allow Colombia to become Venezuela (another pre-election alarmist claim)
Your dollars are safe with Petro as president.
-@futuroexpat


Petro has been in office only a little more than one month (since August 7). No one was predicting that things would deteriorate drastically in just a month or two.


But if Petro is a stabilizing influence why did the peso immediately lose compared to the dollar? It does now seem to be "stable" to some degree but at a much weaker level than before...any look at a chart of USD to COP over time shows the peso's loss right in step with Petro's win.


Yes, in Colombia your dollars are safe - your pesos, not so much.


Many Colombians are following the changes he is making and the people he is appointing - and they are not confident that Colombia will get better, but more likely the reverse. Only time will tell. Even Venezuela had a period of prosperity after Chávez was elected - but now they are the poorest country in South America, and only Haiti in the Caribbean can rival them for poverty, squalor and hopelessness. Remember, Rome was not built in a day. Nor did it decline in a day, but over time it certainly and inexorably did.

cccmedia

Dollar power on the rise.


The U.S. Dollar ended the week of September 12-16, 2022,

on an upnote and rising.


The exchange rate at the close on Friday had the Dollar

equivalent to 4436 Colombian Pesos.


Source... xe.com USD-COP charting

cccmedia

4439

cccmedia

Dollar makes a slight move upward.


The inadvertent four-digit post above (4439)

turns out to be the correct end-of-week

value of the U.S. Dollar in Colombian Pesos

for the period of September 19-23, 2022.


That's a week-over-week increase of just

three ticks compared to the previous

Monday/Friday period.


Source... xe.com USD-COP charting

Closed

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